The hidden debt could have led to over 700 billion yuan (US$107 billion) a year in extra interest payments, as such borrowing is more costly to service than government bonds. Photo: Shutterstock
The hidden debt could have led to over 700 billion yuan (US$107 billion) a year in extra interest payments, as such borrowing is more costly to service than government bonds. Photo: Shutterstock

China debt: ‘under pressure’ local governments racked up US$2.3 trillion in hidden debt last year

  • China’s local governments had 14.8 trillion yuan (US$2.3 trillion) of hidden debt last year, according to Liu Lei, a senior researcher at the National Institution for Finance and Development
  • Local governments were under pressure to increase infrastructure investments and shore up growth last year through the coronavirus pandemic

The hidden debt could have led to over 700 billion yuan (US$107 billion) a year in extra interest payments, as such borrowing is more costly to service than government bonds. Photo: Shutterstock
The hidden debt could have led to over 700 billion yuan (US$107 billion) a year in extra interest payments, as such borrowing is more costly to service than government bonds. Photo: Shutterstock
READ FULL ARTICLE